Why Yelp Is Poised to Keep Plunging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, local business review site Yelp (NYSE: YELP  ) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Yelp and see what CAPS investors are saying about the stock right now.

Yelp facts

Headquarters (Founded)

San Francisco (2004)

Market Cap

$1.2 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$121.3 million

Management

Co-Founder/CEO Jeremy Stoppelman
CFO Robert Krolik

Trailing-12-Month Return on Equity

(26.2%)

Cash/Debt

$123.1 million / $0

Competitors

Facebook (NASDAQ: FB  )
Google
(NASDAQ: GOOGL  )
Yahoo!
(NASDAQ: YHOO  )

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 85% of the 324 members who have rated Yelp believe the stock will underperform the S&P 500 going forward.

A few months ago, one of those Fools, All-Star BlacknGold, succinctly summed up the Yelp bear case for our community:

Still not [making money], although plenty of people will applaud their first quarterly profit and point to it as a sign of better things to come. Think of it like this: Yelp is miles from making $10 million of net income in a 12 month period. Even if that were ever to happen would the company command a market cap anywhere near $1 billion? This valuation just defies logic.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another growth play we are incredibly excited about -- excited enough to dub it "The Only Stock You Need to Profit From the NEW Technology Revolution." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2151121, ~/Articles/ArticleHandler.aspx, 4/16/2014 11:55:33 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement